I am financing a 2 year old car that I can no longer afford (I lost my job). Can I give the car back?

Question

I don't want to have to file bankruptcy, and I don't want to have it repossesed, but I cannot afford to keep it.

I did get another job, but making less than half of what I was earning. I'm still looking for another job, but I'm in school full time so that cuts down on my availability quite a bit.

Answer 1

Generally, this is called voluntary repossession. You tell them you can no longer afford to pay for it and surrender the vehicle, they will auction it off. However, you are then responsible for any amount of money that they were not able to recover, plus you're out a car. I suggest you talk to your lender first and tell them your circumstances. They would much prefer to work with you any way they can to get the vehicle paid for.

Answer 2

Well, those are your choices if you don't contact the lender and explain your situation quickly.

The lender may be willing to accept the title in lieu of reposession and limit the financial damage that you suffer as a result. You'll have to ask to be sure. It will still be on your credit report as a voluntary reposession. That's not quite as bad as a "normal" repo, but only by a minimal degree.

Best plan: Contact the lender and see if they are willing to work with you. See if they will allow you to "skip" a couple of payments while you get back on your feet. They also might be willing to accept interest-only payments for a few months while you get a new job. If you don't ask, you'll never know.

Alternatively, try to sell the car. If you owe less than the loan balance, you should be able to walk away free and clear with your credit intact.

Don't bother trying to get someone to take over your payments, though. Car loans are not assignable by the buyer and the lender will not allow you do do that. The buyer is going to have to get their own loan.

Answer 3

Look over your paperwork, you should be able to cancel your terms by paying a restocking fee (depends on amount you spent on car) and OR a cancellation fee.. We just recently bought from a dealer as well and our fees are $600 to cancell and $500 to restock .. If you cannot find in your paperwork call the finance ppl they are the ones to deal with .. Good Luck

Answer 4

u can try & keep it but if it's a good car u can sell it 4 more money but why don't u get another job where did u work?

Answer 5

Trade cars w. your Dad, Brother, Mother whatever, cut them a deal, they get your new car you take their old they take the payments and you give them what you can monthly for the old one to be owned outright at the end of the deal.

Answer 6

try to find someone to take up the payments on it if you cannot it will mess up your credit. file chapter 11 its a lot better than bankruptcy. they take all your bills and make them into one low payment. people will get their money but not as fast. good luck

Answer 7

you can do a voluntary repo where you just give it back to the bank..the usually sell it at auction and stick you with the difference on which you might work out new terms

Answer 8

get a new job as fast as you can, and possibly try to sell the car off.

get on the phone, and find out directly fron them, its what you need to start on immediately

Answer 9

Try to sell it for what you still owe.

Answer 10

Call your lender and ask them